Apple made a whopping $11.5 billion in profit in its latest earnings report, boosting its stock to an all-time high in after-hours trading.
Apple shares rose to $197.15, an increase of 3.6 percent, after the company reported earnings for its fiscal third quarter ending June 30. The results of net income of $2.34 per share surpassed Wall Street expectations of $2.17 per share.
The maker of iPhones, iPads and other products posted revenue of almost $53.3 billion in the period, also exceeding Wall Street forecasts. Eight analysts surveyed by Zacks had expected $52.4 billion in revenue for the quarter.
“After the heartburn seen from the earnings disappointments across tech bellwethers such as Facebook and Netflix over the last few weeks, Apple gave the Street and tech investors finally some good news,” Daniel Ives, head of technology research at GBH Insights, wrote in a note.
For the current quarter ending in September, Apple said it expects revenue in the range of $60 billion to $62 billion — also better than analysts had expected.
Wall Street had been concerned President Donald Trump’s tariffs against China, and the ensuing counter-tariffs, would hurt Apple, which makes about one fifth of its sales in the country. But CEO Tim Cook expressed optimism about the trade dispute on a call with investors, saying the first three rounds of tariffs didn’t directly affect Apple products and the company was evaluating the $200 billion in China tariffs currently under consideration. “We’re optimistic that this will get sorted out,” he said.
Apple shares have climbed 12 percent since the beginning of the year, while the S&P 500 index is up slightly more than 5 percent. In the final minutes of trading Tuesday, shares hit $190.29, a vault of 28 percent in the last 12 months.
The earnings report comes out the day the city council in Apple’s headquarters of Cupertino votes on whether to put a measure on the November ballot to tax large employers, like Apple, based on local headcounts. Apple, which opposes the tax, sent the council a letter Monday touting its investments in its hometown, including sidewalk and crosswalk improvements, and promised to work with the city to improve transportation.